MARKET OVERVIEW
Today’s Range : 1857-1892
JCI was very strong in the first session yesterday but went into negative territory in the second session. Having touch the highest 1891 JCI plummeted to its lowest 1827, in which finally JCI was closed at 1830, down 31.79 points (-1.71%). Profit takings and an undecided regional market were the main catalyst for JCI yesterday. Nikkei was up 0.2% to 9451 while Hang Seng was down 1.7% to 17087.
DJIA lost 155.88 points last night and ended at 8418 while Nasdaq was down 7.76 points to 1731. Profit taking and banking stocks were the main drivers that dragged down US market. U.S. Bancorp, BB&T and Capital One announced to issue stock to pay the government back for bailout funds. In the mean time, General Motors CEO Fritz Henderson mentioned about the probability GM to file for bankruptcy.
Today we should still hope for another profit taking day. Our JCI trading range would be 1857 to 1892. We think the market has already run out of a positive catalyst. Our top picks for today are BUMI (Hold, R-2175, S-1570), TLKM (Sell, R-8000, S-7100), PGAS (Sell, R-2950, S-2500), ANTM (Hold, R-1920, S-1470) dan PTBA (Buy, R-12100, S-9900).
TODAY'S TOP PICKS
BUMI – Hold
Target Price :2175
Resistance : 2175
Cut Loss :1600
Support : 1570
Yesterday BUMI was closed at 2000 which is near our 2175 target price. In fact, BUMI has already touched 2150 level before retraced to 2000. On technical view, we start seeing an exhausted move on BUMI. Therefore we recommend Hold on BUMI to see what this stock is going to do in the next couples of days. Don’t be too agressive.
TLKM – Sell
Target Price :8000
Resistance : 8000
Cut Loss :5900
Support : 7100
Down for a reason. TLKM has been in negative territory for three days in a row. It turns out because of less-than-expected 1Q09 result in which net profit down 23,4%. Three candle sticks formations shows a very bearish trend. Therefore we recommend Sell on TLKM.
PGAS – Sell
Target Price : 2950
Resistance : 2950
Cut Loss : 2100
Support : 2500
We still see yesterday’s closing price of PGAS is just another profit taking. But lower high in the last three trading days is a worry to us. In the long term we’re bullish on PGAS but for the moment we think profit taking pressure is very high. We recommend a more conservative moves on PGAS. Take profit as anybody else.
PTBA – Buy
Target Price : 12100
Resistance : 12100
Cut Loss : 8500
Support : 9900
One of the stock that showed positive movement yesterday. We set our trading target of PTBA at 12100, which also serve as its resistance. We see a support at 9900. However we strick a cut loss level at 8500. Profit taking pressure is in the air. Don’t be too aggresive on PTBA. Besides, we’re afraid we see a doji formation yesterday.
ANTM – Hold
Target Price :1920
Resistance : 1920
Cut Loss : 1530
Support : 1470
Decrasing volume on higher price and closed unchanged after hit highest at 2125 is not a bullish sign. Our main catalyst for ANTM is nickel price. We should see what happen on nickle price to come to conclusion of ANTM. However, yesterday closing price at 1910 is very near of our 1920 target price. Having said that, we recommend a Hold for ANTM today.
DISCLAIMER ON. The followings are not a recommendation to buy, hold or sell any stocks. Those are for my personal trading purpose only.
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